Connect with us

E-Financial

Merchants Identify Roadblocks to PoS Business

Published

on

Merchants making use of point of sale (PoS) terminals for transactions at their locations have reeled factors hindering the use of PoS device as a means of payment and urged actions to address them.

 

Among the roadblocks identified include; lack of credit backing for PoS transactions by banks; +two days settlement arrangement; placing of burden on customer for technology failure among others.

 

The merchants disclosed this at PoS innovation Summit organized by Global Accelerex in Lagos.

 

Sarafadeen Fasasi, president, Association of Mobile Money Agents in Nigeria, said that the practice of + two days settlement arrangement for transaction on the PoS is a major challenge in the business of using the device as a means of payment.

 

“By policy, settlement should be done in one day of the payment, but today that is not obtainable in practice as what we get is + two days. This means that if a merchant gets payment through PoS device today by 10am he will not get value in his account till 6pm tomorrow which means he has lost two days of business. This settlement system slows down business for us merchants as well as does not optimize the benefits of PoS system,” he said.

 

He also decried lack of investment by some banks in the PoS business where they are reluctant to acquiring additional PoS terminals as well as providing credit backing for transactions over the device.

 

“Just like as it is with ATM where banks load money to the machine, banks are expected to provide credit backing for transactions over this device, but today very few banks are doing it others are declining,” he added.

 

Fasasi however, urged banks to invest in PoS for agent networks as a way of achieving PoS magic. According to him, ‘agent networks need informal approach to bring to financial inclusion

 

Corroborating Fasasi, Mr. Prakash Keswani, managing director, ARTEE industries (SPAR), stated that the system of transferring burden of technological failure in the process of payment through PoS on the customer is worrisome instead of the provider of the device.

 

“We often face with a situation where transactions did not go through and customers account debited and not reversed immediately expecting the customer to go to their bank and fill one form or the other. In some cases customers insist on going with the goods they purchase,” he explained.

 

A report from NIBSS made available to Nigeria CommunicationsWeek shows that 51 percent of volume of transactions in 2016 occurred in Lagos with 32.7M, followed by Abuja with 6.8m and Port Harcourt 5.1M.

 

It further stated that between January and July 2017, only 15,093 terminals were added to the network.

Nigeria CommunicationsWeek believes that technology makes life more exciting and helps improve the lives of people around Nigeria and indeed the world. So since 2007, we have devoted our energy to independent reportage of technology and how they affect lives.

Continue Reading
Advertisement
Comments

E-Financial

SEC’s eDividend Campaign Moves to South South

Published

on

Securities and Exchange Commission (SEC), Nigeria through its Port Harcourt Zonal Office will be holding a Town Hall meeting with stakeholders and the general public.

 

This is in a move to enlighten investors and the general public on the process and benefits of eDividend and to discuss other contemporary issues in the Nigerian Capital Market.

 

This will also provide an opportunity to throw more highlights on investment opportunities available in Nigerian Capital market and how retail investors can benefit therein.

 

The meeting is scheduled for Wednesday, July 18, 2018 at Hall ‘C’, Landmark Hotel, 4, No. 4, Worlu Street, off Olu-Obasanjo Road, Port Harcourt, Rivers State. Registration of participants starts by 9:00amwhile the main event starts at 10:00am.

 

The event will create an arena for the Apex capital market regulator to educate and enlighten the public on the above subject and also for operators, stakeholders and various investors to interact and discuss other issues surrounding the activities of the capital market.

 

Recall that the SEC in January 2015 commenced the e-dividend registration campaign in Abuja with a Road Show culminating in a Town Hall Meeting.

 

The Commission had announced that the e-dividend registration would continue seamlessly in spite of the expiration of free registration deadline which and also enjoined investors yet to enroll, to continue with the registration at a cost of N150 only.

 

“Investors should continue to approach their banks or registrars, as usual, to seamlessly mandate their bank accounts for the collection of their dividends electronically, including unclaimed dividends, not exceeding 12 years of issue; as the N150 would not be demanded from them at the point of registration.

 

“The N150 fee would not be demanded from the investors at the point of registration or submission of completed e-dividend mandate forms, divergent views have begun to trail the Commission’s stance that investors yet to register are to bankroll the exercise at a marginal cost of N150” the SEC added.

 

 

Continue Reading

E-Financial

Broadband, Mobile Phones, Others Expanding Business Frontiers – Okere

Published

on

Austin Okere, founder, CWG, has said that the ubiquity of broadband and the pervasiveness of mobile phones, along with breakthrough technology such as Artificial intelligence, Big Data and Blockchain are expanding the frontiers for business models in ways that were hitherto not possible, and leveling the playing field in the process.

He stated this in his presentation delivered at the 2018 Lagos Bankers & Stakeholders’ Nite held in Lagos over the weekend.

According to him, ‘any bank that does not read the signs and join the innovation train will definitely be disrupted and left behind. Remember that there was a time when the Post Office was at the center of our lives. When was the last time you visited a post office?’.

“Even though cryptocurrencies such as bitcoin tend to steal the limelight, it is their underlying blockchain technology that is proving to be of practical benefit. This technology, which goes beyond financial application, is expected to disrupt global supply chains by boosting transaction speed across borders and improving transparency.

“Essentially, the blockchain is a shared virtual public ledger where encrypted transactions are confirmed by outside parties. Confirmed transactions are placed in a “block” and added to the chain, hence the name blockchain. It is this technology that the FinTechs are leveraging to disrupt the traditional banks.

“Here in Nigeria, blockchain can help immensely unlock the immense capital locked in land assets that are not enumerated because of an antiquated system of land administrated that is very ripe for disruption.

“The most disruptive application of the blockchain technology however, is in the Financial Sector; and this will form the focus of my discourse. The consistent complain about banks have reached a crescendo in recent years. Is this justified?” he said.

 Okere added that Fintech companies in emerging markets have shown that with blockchain technology, it is possible to leapfrog to new forms of banking.

“Truth be told, Banks are best placed to continue to influence the future of Financial Services because of their huge branch network, solid reputations, and risk controls, as well as years of customer cultivation and loyalty. They however, have to radically change the mindset of we win when you lose’.

He noted that regulators are now helping Fintechs. “Fintechs are getting a lot of support from Regulators, believing that Fintech firms are small enough for any problems to be manageable, and on the other hand, might produce useful innovation (the sandbox approach).

“The intention is to lower market entry barriers for Fintech companies. For instance, France’s Central Bank has announced opening up a new innovation lab, aiming to collaborate with blockchain startups.

“In December 2015, Nasdaq executed its first trade on a blockchain, through its Linq ledger. The exchange said the blockchain promises to expedite trade clearing and settlement – all the steps needed to transfer the asset from seller to buyer including recording the transaction — from three days to as little as 10 minutes. That’s because the trades remove many manual processes and bypass third parties.

“As such, settlement risk exposure can be reduced by over 99%, dramatically lowering capital costs and systemic risk. Other stock exchanges tinkering with the blockchain include Australia, Germany, Japan, Korea, London,Toronto and  Myanmar.”

Okere explained that the future of Fintech seems bright. “Accenture recently released a report which found that investment in Fintech around the world has increased dramatically from $930 million in 2008 to more than $12 billion by early 2015.

“The Fintechs employ Artificial Intelligence, Big Data and Machine Learning to glean the credit habits of customers from their mobile usage, and so have mitigated against the risk of default.

“The homepage of LendingClub advertises personal loans of up to $40,000. You can “apply online in minutes” and “get funded in as little as a few days,”. Another prominent Fintech lender Funding Circle claims that small businesses can get loans from between $25,000 and $500,000 in as little as 10 days.

“These are innovative services that seek to fill important niches in the credit markets. They enable people who have historically been shunned by banks to get loans in order to expand their businesses,” he said.

Continue Reading

E-Financial

Farmcrowdy Wins Digital Business of the Year Award in Africa

Published

on

Farmcrowdy, Nigeria’s first and leading digital agriculture platform has won the Digital Business of the Year (2018) award in Africa. The award was granted at the annual Global African Business Awards (GABA) ceremony in Addis Ababa, Ethiopia.

Jimoh Maiyegun, Farmcrowdy’s Chief Technology Officer at the Global African Business Awards ceremony in Addis Ababa.

Launched in 2017, GABA, the world’s premier annual business award was created to celebrate, honour and generate public recognition of the achievements and positive contributions of organizations and working professionals in the continent of Africa.

Other nominees of the Digital Business of the Year award include e-commerce platforms – Konga, Jumia, Zando, Dressmeoutlet, Mall for Africa and Dealdey; WeFarm, the world’s largest farmer-to-farmer digital network; Interswitch payment gateway; and Delvv.io, South Africa’s branding and refinement partners.

Onyeka Akumah, Founder and CEO of Farmcrowdy says, “we are honoured to have our hard work aimed at impacting on the lives of rural farmers recognised.

We are delighted about the great opportunities ahead of us as we continually strive to remain at the forefront of technological innovation in Agriculture across Nigeria and eventually the continent of Africa.”

With a team of 35, Farmcrowdy has, in the last 20 months, empowered over 7,000 direct and indirect rural farmers and given thousands of farm sponsors a platform to participate in Agriculture from their computers or mobile phones in order to make profit at harvest.

This impact has seen the platform plant Maize, Rice and Cassava on over 8,000 Acres of farmland in less than 2 years and raised close to 600,000 chickens to boost food production in the country.

The leading digital agriculture platform has also raised $1.4 million dollars in seed funding from local and international investors including Cox Enterprises, Social Capital, Techstars Ventures and most recently, won a grant from the GSMA Ecosystem Accelerator Innovator Fund.

So far, the funds have given the leading startup the potency to scale its operations to 10 states of operation in Nigeria with plans for more expansion across more states and regions.

Continue Reading

Trending

Copyright © 2017 Communication Week Media Limited.